Contractors in Austria can be set up as Self Employed.
It is possible for contractors to be engaged under the self-employed model where they are truly independent contractors who will typically provide services as sole traders/sole proprietors. The contract executed should be clearly for selfemployed consultancy (or similar), but most importantly, what happens in practice needs to match what the contract states. The worker should have no personal work obligation or economic dependence with the end client, they should use their own work equipment and be responsible for the successful completion of the work ordered by the client.
Tax year – the tax year is the calendar year for individuals
Immigration – nationals of the EU, EEA and Switzerland do not require a work permit, but are required to obtain a residence permit if staying for longer than three months. This is to be done within four months of arrival.
Workr Fees – €575 per month plus €350 set up fee.
Self-Employment Summary
Registration – a contractor will be registered with the social security authorities as well as for tax and VAT. Those who establish an abode or in any event spend six months in Austria are deemed tax residents and therefore taxed on their worldwide income. Non-residents are taxed on Austrian income only at the normal progressive rates.
Contract – a fixed-term contract can be used in Austria.
Social Security – contributions apply to income up to a ceiling of €5,985 per month to cover pension, health insurances, housing promotion fund and contributions to the Chamber of Labour.
Tax – progressive rates from 25% to 55%
Benefits – genuine business expenses can be claimed as a self-employed contractor. The Austrian system allows deductions and allowances, special expenses (personal or family expenses – for single taxpayers up to €2,920 per year) and extraordinary expenses (such as medical expenses not reimbursed by a health insurance), which will depend on each persons situation, so it should be verified with the local accountant. Typically travel, training courses and work-relevant subscriptions are considered allowable expenses as well as costs associated with the move to and from Austria for foreign workers going into the country specifically for a project.
